Essex Buys Sachs MF Portfolio

Essex Property Trust, Palo Alto, Calif., has acquired John M. Sachs Inc.'s multifamily portfolio in a transaction valued at approximately $301 million.Essex Property Trust, Palo Alto, Calif., has acquired John M. Sachs Inc.'s multifamily portfolio in a transaction valued at approximately $301 million. The portfolio consists mostly of apartment communities, with some recreational vehicles and manufactured housing. The merger will increase the size of Essex’s San Diego apartment portfolio from 326 units to 3,009 units, representing 13% of its total apartment portfolio, the real estate investment trust said. Essex is funding the merger through a combination of stock, assumption of liabilities, and cash. The REIT will issue 2.719 million shares of common stock at $49.25 each. In addition, it is assuming mortgages totaling approximately $64.6 million (at a fixed interest rate of 5.51%) on four of the acquired properties, and will be responsible for repaying existing liabilities of about $33 million. "San Diego’s diverse employment base and above-average job growth is highly desirable to renters and investors alike," said Keith R. Guericke, president and chief executive officer of Essex.